Greece announces largest tax reform in modern history with direct tax cuts

Greek Prime Minister Kyriakos Mitsotakis will present a government plan at the upcoming international exhibition in Thessaloniki over the weekend, which authorities are calling "the largest tax reform in modern history," according to sources.

According to the government, the key goal of the package is to reduce direct taxes and lower rates so that the financial benefit reaches citizens directly. Official statements describe the reform as aimed at increasing household income and mitigating the effects of rising living costs.

The government prioritizes broad tax support for the population over opposition proposals, including the idea of a 13th salary. Measures are expected to affect employees, freelancers, pensioners, and the middle class; specific amounts and timelines will be announced in Mitsotakis’ speech. The Prime Minister will arrive in Thessaloniki on Friday afternoon, and his key address will set the tone for the autumn political agenda.

For residents of Southern Cyprus, there are no direct changes to the tax regime; however, those with economic ties to Greece — working there, earning income, or regularly sending/receiving transfers — may feel the effects when measures are implemented. According to sources, details and timelines will be published along with a breakdown of specific rates and benefit groups.